Taxpayers are set for a hike in council tax bills after county council bosses proposed a near two per cent rise.

The county council’s cabinet is consulting on plans to put up their share of the council tax bill by 1.99 per cent – which would raise more than £21 a year from many properties and around £7.3 million across the county.

And the hikes could go higher - police and crime commissioner Clive Grunshaw is consulting on whether to raise the police portion of the council tax bill.

The county council must make savings of £300 million in the next four years due to cuts in the budget from central government.

Jennifer Mein, leader of Lancashire County Council (LCC), said the council was under immense financial pressure with a £300 million funding gap.

She added: “It means 41.5p per week more for a band D property but would bring in an extra £7.3 million a year for the council which could pay for 180 children’s social workers, or repair nearly 300,000 potholes.

“In proposing this 1.99 per cent increase, we’re actually asking people to pay slightly less council tax than they were paying two years ago, but the extra funds would make a real difference to local services.”

The county council accounts for the lion’s share of the overall council tax bill, funding services including schools and libraries.

However, Hyndburn council bosses offered some respite for taxpayers by ruling out increasing the borough’s share of council tax.

Council leader Miles Parkinson, said: “I’m pleased to say we are putting the final touches on our budget and we will be able to achieve a nought per cent council tax rise and I’m pleased to say we should be able to announce there will be no compulsory redundancies.”

He said the council would accept a one per cent grant from the government instead of putting their rates up.

Conservative group leader councillor Peter Britcliffe pictured called the rise at county hall ‘disgraceful’.

He said: “This is the same old Labour taking money out of people’s pockets.

“This will mean substantial increases for everyone and I would call on Miles to follow his example through Hyndburn to county hall.”